Cheap properties get death sentences (Pittsburgh, McKeesport: renting, loans, houses)

[PreservationPioneer]

"Places such as Wilkinsburg, McKeesport and the Natrona Heights area deal with similar challenges, including growing backlogs of properties set for demolition.

'A lot of these buildings are getting death sentences because nobody can afford to fix them up and bring them up to code,' said Barry Denk, director of the Center for Rural Pennsylvania."

Lending challenges, rehab costs thwart efforts to revitalize | TribLIVE

[I_Like_Spam]

If the cost of renovation is more than what the value of the property is expected to be after its done, the renovation isn't going to be done.

Lenders can't finance this kind of project with a mortgage, as the collateral doesn't cover the possible loss if the borrower defaults.

[PreservationPioneer]

And this is why revitalization of older communities stalls, and sprawl continues. Well, one reason, at least. There should be incentives for projects that revive housing in depressed communities, not disincentives. This throwing away of established communities is not sustainable or positive.

[North Beach Person]

Demolition by neglect.

[Moby Hick]

Originally Posted by PreservationPioneer

There should be incentives for projects that revive housing in depressed communities, not disincentives.

I think you'd want it paired with incentives to push over the houses that get past a certain point. One ruin sitting there empty for years can cause all sorts of problem.

[I_Like_Spam]

Originally Posted by PreservationPioneer

And this is why revitalization of older communities stalls, and sprawl continues. Well, one reason, at least. There should be incentives for projects that revive housing in depressed communities, not disincentives. This throwing away of established communities is not sustainable or positive.

There are incentives, special lower rate government guaranteed loans for homeowners in disadvantaged communities seeking to do repairs.


I'm not familiar with the particulars of the projects, but I wonder if the newer construction near Beltzhoover Ave. and Industry, and along Finance St. in Homewood Brushton are part of HUD programs to help impoverished neighborhoods.

Maybe not enough is being done, but there already programs out there.

[PreservationPioneer]

It's not enough. Not even close.

[gg]

On top of all the costs mentioned, there are also big costs in places like Wilkinsburg that makes it about impossible to own a building and make a profit on flipping or renting it out. Why? The crazy taxes. I am looking for a building to renovate and Wilkinsburg comes up in my searches, but that tax bill is too high to make the numbers work. It is what it is. Tearing places down is going to happen. Building new places are not going to happen due to the tax situation. The costs are too high. Anyone have a solution? I don't think there is one at this time.

[North Beach Person]

If the Pittsburgh area follows what's happened in other areas those properties will eventually be redeveloped with some gentrification taking place. That's assuming that there are jobs close enough to offer an incentive for people to live there.

Some of the worst areas in DC 30 years ago are now the "hot" places to be. In Baltimore, not so much.

And yes, I'm using non-PA examples.

Preservation Pioneer, you're correct, the incentives may not be enough but what level would be? Every dollar given to that program is a dollar that can't be used elsewhere.

[sparrowmint]

Originally Posted by h_curtis

On top of all the costs mentioned, there are also big costs in places like Wilkinsburg that makes it about impossible to own a building and make a profit on flipping or renting it out. Why? The crazy taxes. I am looking for a building to renovate and Wilkinsburg comes up in my searches, but that tax bill is too high to make the numbers work. It is what it is. Tearing places down is going to happen. Building new places are not going to happen due to the tax situation. The costs are too high. Anyone have a solution? I don't think there is one at this time.

You'd think someone could come up with a solution to this. Similar things happen in a lot of poor areas (including much of Detroit), where because the house values are so low, they have to raise the rates to get blood out of stones because they still have to somehow pay for basic services. Except that this is a disincentive to ever have a home that's worth anything at all (and often people just move), the tax base shrinks even more. It's a vicious cycle.